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Merida Mats produces floor rugs and they can produce up to 4,102 floor rugs per year. It costs Merida Mats $142 in raw materials and
Merida Mats produces floor rugs and they can produce up to 4,102 floor rugs per year. It costs Merida Mats $142 in raw materials and $40 in labour. There is also a delivery cost of $29 per rug - the business doesn't sell through stores and uses the internet to sell directly to customers. The business also pays $6,931 for rental of the factory space and manufacturing machine. There is a special order request to make 525 rugs. The business however only has 500 excess capacity. The rest of the rugs must be made by working overtime where labour will be paid penalty rates of 20% of the regular amount. The special order price for the rugs is $207 What is the impact on Merida Mats' profit of accepting the special order? Please answer to 2 decimal places. If accepting the order will generate a loss, be sure to add a minus/negative before your
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